Raine and Horne Commercial

INSIGHTS SPRING 2018 | 36 ACT | Canberra Nick Cotis of Commercial Canberra says yields in the nation’s capital range from 7.5% for retail property to 8.5% on industrial assets. Office space is delivering yields of up to 8.0% though this can fall to 6.0-6.5% if the property is occupied by a government tenant. Nick says, “The upcoming elections and the current leadership issues, out of cycle interest rate increases and the overall positive sentiment in the country are all factors impacting the commercial market in the ACT.” Nonetheless, SMSFs are still active buyers in the $15 million-plus market, with particular interest in properties offering yields of 6.0-6.5%. According to Nick, office space is the top pick in today’s market. He explains, “These assets are especially a ractive if they have a strong anchor tenant. It can be hard to find this type of investment and the yields are still good at 6.0 and 6.5%.” ACT “ The upcoming elections and the current leadership issues, out of cycle interest rate increases and the overall positive sentiment in the country are all factors impacting the commercial market in the ACT. ”